Skandia's Market Position in Sweden

Stockholm, SWEDEN


STOCKHOLM, Sweden, Feb. 16, 2005 (PRIMEZONE) -- Tomorrow the Swedish Insurance Federation will be publishing the industry's quarterly statistics for the fourth quarter of 2004. These statistics also include information about Skandia's sales development. Consequently, in respect of the stock exchange listing agreement, Skandia is today releasing sales information for the fourth quarter of 2004.

Skandia's market position in the Swedish market stabilised during the latter part of 2004, from a low level at the start of the year. This stabilisation reflects an improved work approach and contact interface with our distributors and customers. The fee reduction for unit linked assurance that was carried out in November has still not had any effect on new sales as per the fourth quarter. The effect of the improvements that have been carried out is expected to begin showing during 2005. Sales and new sales increased during the fourth quarter. Some of this increase is seasonal, however, it can also be credited to greater interest in Skandia's products.

Market shares for the full year

Skandia's market share of new business for life and unit linked assurance decreased during the full year 2004 to 19.6%, compared with 25.1% for the full year 2003. Compared with the third quarter (on a moving 12-month basis), the decrease was 0.7%.

For Skandia Unit Linked Assurance, the market share was 18.0% in 2004, compared with 25.9% for the full year 2003. The corresponding market share for Skandia Liv in the traditional life segment was 21.6% (24.3%).

Market shares for individual quarters

The quarter-on-quarter trend shows that Skandia's market share reached its lowest level during the first quarter of 2004, at 16.1% for life and unit linked assurance. The market share during the fourth quarter was 23.4%.

For Skandia Unit Linked Assurance, the market share increased from 16.6% during the first quarter to 21.2% during the fourth quarter. Skandia Liv showed an increase from 15.5% to 25.8%.

Sales during fourth quarter

Combined sales (excluding Skandia Liv) decreased by 2% during the fourth quarter compared with the same quarter a year ago, to SEK 2,541 million (2,607). Compared with the third quarter of 2004, sales rose 17% Unit linked assurance.

Sales of unit linked assurance decreased by 6% during the fourth quartercompared with the same quarter a year ago, to SEK 1,893 million (2,019). Compared with the third quarter of 2004, sales rose 6%.

New sales of unit linked assurance decreased by 19% during the fourth quarter compared with the same quarter a year ago. Compared with the third quarter of 2004, new sales rose 44%.

As previously reported, discontinued savings in the form of premium reductions and conversions of several-year contracts to paid-up policy status have been at a high level. This level stabilised gradually in 2004 and began subsiding toward the end of the year. Conversion of contracts to paid-up policy status is still at a high level compared with the assumptions that form the basis of the embedded value calculations. Therefore, the outcome compared with operative assumptions in the embedded value calculations will remain negative during the fourth quarter.

As in previous years, in its year-end accounts for 2004 Skandia will beadapting the assumptions used in the embedded value calculation. Duringthe year, extensive measures were carried out to create the conditionsfor a permanent improvement in Skandia's market position in Sweden. Forthe Swedish operations, this will give rise to an adjustment of -- amongother things -- the assumptions on surrenders (including paid-uppolicies), changes in the cost level and fee structure, and assetmanagement charges. With respect to the Swedish operations, thisadjustment is expected to be negative for a combined total of SEK 450-550 million during the fourth quarter.

Skandia Liv

Sales in 2004 amounted to SEK 12,170 million (12,865). Skandia Liv'ssales for the fourth quarter were unchanged compared with the samequarter a year ago, at SEK 3,489 (3,513). Compared with the thirdquarter of 2004, sales rose 32%.

New sales decreased by 30% in 2004. During the fourth quarter, new salesdecreased by 14% compared with the same quarter a year ago. Comparedwith the third quarter of 2004, new sales rose 8%.

Investment income was favourable in 2004. The collective funding ratiowas 101% as per 31 December 2004.

Skandia Liv will be raising its bonus rate to 4% as from 1 March 2005.


 For further information, please contact:
 Gert Engman, Executive Vice President, Skandia, and General Manager,
 Skandia Sweden, tel. +46-8-788 25 00
 Harry Vos, Head of Investor Relations, Skandia, tel. +46-8-788 36 43
 Urban Backstrom, President and CEO, Skandia Liv, tel. +46-8-788 21 41

Skandia Sweden



 Sales, SEK million                     Q4 2004                   Q4 2003

 Unit linked assurance                    1,893                     2,019
 Mutual funds                                34                        84
 Direct sales of funds                      479                       380
 Other                                      135                       124
 Total (excl. Skandia                     2,541                     2,607
 Liv)


                                           2004                      2003

 Unit linked assurance                    8,243                     8,567
 Mutual funds                               300                       344
 Direct sales of funds                    2,010                     2,681
 Other                                      552                       484
 Total (excl. Skandia                    11,105                    12,076
 Liv)


 New sales,
 unit linked assurance
 Fourth quarter                             443                       544
 Full year                                1,668                     2,292

Definitions of sales Sales Sales pertain to paid-in premiums and deposits in funds from Skandia's customers. New sales New sales pertain to single and regular premiums from unit linked contracts entered into in 2004, recalculated to full-year figures. According to industry practice, new sales are defined as regular premiums recalculated to full-year figures plus 1/10 of single premiums during the period.

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